PETALING JAYA: ScaleUp Malaysia, an accelerator which focuses on growth stage companies in Malaysia, has partnered Singapore-based venture capital firm Quest Ventures to invest and scale the regional growth of top Malaysian startups that will bring in a foreign direct investment deal worth US$1 million (RM4.16 million).
To qualify for the Cohort 2 programme launched today, scaleups must be operating on business models that have the propensity to disrupt existing markets or have solutions that are able to navigate future challenges and take advantage of opportunities brought about by the current economic climate.
Twenty-four companies shortlisted from the Cohort 2 applications will begin their accelerator journey in October 2020 before presenting their solutions in front of the investment committee at the end of the program. As part of the partnership, ScaleUp Malaysia Cohort 2 powered by Quest Ventures will invest at least US$60,250 in up to 12 of these companies.
ScaleUp Malaysia launched its first Cohort in December 2019 with 20 companies. Ten of them received an investment of US$48,283. The accelerator, through their Pegasus model, grooms startups in the growth and post product-market fit stage into scaleup businesses with high revenue growth and increased profitability rates that attract follow-on investments.
“In this second cohort, we want to empower solutions that tap into the buy-in of the digital economy and prime them through our rigorous syllabus designed to take local companies to the global stage. Our partnership with Quest Ventures will enable our scaleups to quantum leap their growth, access adjacent markets and unlock a wealth of economic possibilities through value creation, needed now more than ever with our collapsing global economy brought about by Covid-19,“ said ScaleUp Malaysia senior partner Dr V. Sivapalan.
Applications for Cohort 2 opened today. Participants must be registered as a Malaysian company and will be shortlisted based on revenue generation; ability to demonstrate product-market fit; potential of highly scalable products or service with large growth potential; and possibility of global expansion.